The Hindu Business Line : Home appliances major Inalsa bid to strengthen position

AFTER a year of reinventing and restructuring, Inalsa Appliances Ltd, a Turner Morrison Group Company, is now all set to strengthen its position in the home appliances segment.

From a production-led company, Inalsa has now turned in to a complete marketing outfit.

The company, which exited manufacturing in May 2003, is confident of achieving breakeven in 2003-04.

"As part of our restructuring plan, we decided to close the manufacturing facilities located in Noida and concentrate only on marketing the Inalsa brand of products," Mr Ranjit Chopra, President & CEO of Inalsa, told Business Line.

He said the company is now sourcing its products from dedicated local manufacturers who meet the company's parameters. However, there is no change in the shareholding pattern of the company.

Explaining the reasons behind exiting manufacturing, Mr Chopra said, "Production for us was not a competitive advantage. To ensure that the employees do not suffer when we shut the manufacturing plant, we made an open offer to employees to invest and manufacture. The company is in fact sourcing products from the unit set up in collaboration with ex-employees."

From being a company with 360 employees, Inalsa now has over 60 employees. Though the company is outsourcing its products; the technical know-how is Inalsa's, he said.

The company closed the year 2002-03 with a turnover of Rs 30 crore. For the year 2003, the company suffered a marginal dip in the turnover, clocking Rs 28 crore. Commenting on this dip, Mr Chopra said, it was mainly due to the restructuring exercise that the company underwent beginning January 2003.

Inalsa has also tried to strengthen its marketing network, he said. The distribution network will be the major thrust area for the company in 2004. Currently, the company has 80 distributors and 3,000 retail outlets. Further, it proposes to spend about 7 to 8 per cent of its turnover on marketing in 2004-05, he stated.

The current year will also see a slew of launches that will help turn the company from just being a kitchen appliances to a home appliances company.

The company has already launched dry irons and room heaters. Inalsa continues to maintain a leadership in the food processing segment.

Mr Chopra said 40 per cent of the company's products are being sourced through imports.

Inalsa imports microwave ovens, toasters, electric kettles, juice extractors and sandwich toasters. Chinese firm Galanz supplies microwave ovens to the company, he said. The imports are largely from China and Taiwan.

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